16. You have 35 years left until retirement, and you want to retire with $1,000,000 saved. You plan to deposit 250 dollars into the account each month beginning one month from today. You currently have $10,000 saved. Calculate the rate of return (APR) you must earn to reach your retirement goal. (Enter percentages as decimals and round to 4 decimals)

17. Tom Tom Co. has been working on new technology. This new technology will be available in the near term, and the firm's CEO anticipates the first cash flow to be $250,000, received 8 years from today. Subsequent annual cash flows will grow at 3% in perpetuity. Calculate the value of the technology today if the discount rate is 12%? (Hint: deferred growing perpetuity)

18. You just won the Power Ball Lottery worth $340,000,000. Upon reading the fine print you learn, that you have two options:

Option A: take the cash value of $175.5 million today (before taxes)

Option B: The winner is guaranteed to receive 30 graduated payments over 29 years; the first payment is made today. These payments will increase by 5% per year until the final payment. The first payment, received today, equals the jackpot divided by 30.

Assuming a required rate of return of 4%, calculate the present value of option B. (Hint: growing annuity)